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[mike123]

SEC, Fed aware of everything at Lehman: Fuld 10:24 a.m. 10/06/2008 Provided by WASHINGTON (Reuters) - U.S. federal banking regulators were aware of everything that was happening at Lehman Brothers Holdings Inc in the months leading to the investment bank's collapse, Lehman chief executive Richard Fuld told a Congressional hearing on Monday. "Quarter to quarter, month to month, regulators (the Securities and Exchange Commission and Federal Reserve) saw how we reduced our commercial real estate holdings, how we increased our liquidity pools, how we decreased leverage and strengthened our capital levels," Fuld said in prepared testimony to be delivered to the House Oversight and Government Reform panel. Over the summer, Lehman discussed with the Fed the possibility of converting to a bank holding company, which the two remaining big Wall Street investment banks Goldman Sachs Group Inc and Morgan Stanley recently did. Lehman filed for Chapter 11 bankruptcy protection on September 15. (Reporting by Rachelle Younglai and Kim Dixon, editing by Gerald E. McCormick)